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Vedant fashions IPO, vedant fashions hold or sell

 Vedant fashions buy sell or hold for long term?

From fashion & garment industry another company came up with its IPO in Indian stock market. But Vedant Fashions IPO got mixed response in the IPO market. Many retail investors were confused that what they should do in Vedant fashions  stock after its IPO listing. We will try to find out the positive or negative points about the Vedant fashions IPO then we will try to find out best answer that should you hold or sell Vedant fashions stock after listing or not? Should you buy Vedant fashions stock after IPO listing ? sometimes it is risky to make final view in such type of companies but for our website viewers we will try to come on final best conclusion.





Question:

What are the positive points about Vedant Fashions?

Answer:

  • Vedant fashions company has strong brands like manyavar , Mohey, mebaz etc and having brand ambassadors like Amitab bachan, Alia bhatt. Out of all brands of the company “Manyvar” brand is very famous  brand in India. We can say that company brands are market leader in Indian celebration industry.
  • Large & growing Indian wedding & celebration market will give more opportunities to the company to expand its business . Company has also strong technology bases supply chains & inventory system.
  •  
  • Company has all price band of garments lowest to highest  price. We can say that company target all type of customers in Indian market which is a good point for vedant fashions.
  • Company has asset light business model with strong management.
  • Company has not its own factory for garment manufacturing. Company give order to different companies for manufacturing its products as per its own quality standards It means that there is no requirement for making any investment on land,& other assets to run the business
  • Company has its own retail outlets but hiring of staff will also be managed by franchisee owners . Here again  company is saving cost of employment.
  • Company also sell its products online through its own company mobile app.
  • Financials of the company is really very strong  whether its  regard of margins, free cash flow, profit . Vedant fashions is reporting nearly 45% of profit margins , EBITA margins. Very less companies  have such kind of financial results.

Vedant fashions Financial record: ( in millions)

Total assets in march 2021 was  16256, In Sept 2021 14,455

Total revenues in March 2021 was 6250 7 in Sept 2021 was  3872

Profit after Tax in March 2021 was 1329 & in Sept 2021 it was 984

Question:

What are the negative points about the Vedant fashions?

Answer:

As per our research, Vedant fashions coming up with higher valuations. Investors or traders should not expect much listing gains in this IPO because management of the company has not left much on table for shareholders. But still business model will attract the big investors & mutual fund companies for the long term.

Vedant fashions IPO was  based on OFS means company existing investors will sell their holding in Indian stock market at very higher price. It is a biggest negative for the short term or medium term  investing point of view.

Question:

Should hold or sell Vedant fashions stock after IPO listing?

Answer:

If you had received allotment in vedant fashions IPO then it is better to take exit from it if you luckily get higher price after listing because as per our research  company is asking very valuations  from Indian stock market which is not fair . If any company management will not left profit for its company investors & shareholders  then  it is a not good sign. As per our calculation, the fair price of Vedant fashions stock should be around 450rs to 550rs. It means that company has not left anything for investors at least for short to medium term point of view.

Question:

Should you buy Vedant fashions after IPO listing ?

Answer:

If any long term investor want to buy Vedant fashions stock for 1 to 2 years point of view then it is better to start accumulate at lower levels. There is nothing bad with the company and its financials but problem is that company IPO price band was not in favor of investors.

Our recommendation on Vedant fashions stock:

Company management is strong, financials of the company is strong but valuations are very high. It is better to buy vedant fashions stock at lower levels and for moderate returns in the long run.

Question:

What are then Long term targets of Vedant fashions stock?

Answer:

Vedant fashions has already come up into Indian stock market with its long term targets ( 1 to 2 years) at its IPO price band. It is better to accumulate this stock after profit looking and wait for at least 720rs to 650rs price levels to come in the coming days if you want to start accumulate vedant fashions stock for long term point of view then we can expect 858+rs targets in 1 to 2 years time frame. If you are risky trader then Try to take entry in the stock after on 5 % to 10% correction in price and sell on some higher levels if comes otherwise we will not recommend to trade in this stock. We will update our price targets for vedant fashions stock after analysis of company results. 

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